VA Benefits Set for Increase in July 2025: What You Need to Know About Your Upcoming Deposit

If you’re a veteran or a family member receiving benefits from the U.S. Department of Veteran Affairs (VA), there’s good news on the horizon. Starting in July 2025, many VA benefits will see an increase, meaning your monthly deposit could be higher. Here’s what this means for you.

What’s Changing?

In July 2025, various VA benefits, including disability compensation and pension, are set to rise. This adjustment is a part of the annual formula that includes the cost of living adjustments (COLA) aimed at helping beneficiaries keep pace with inflation.

The exact increase isn’t published yet, but it typically mirrors the Social Security Administration’s COLA adjustments. In recent years, these adjustments have varied, often reflecting rising costs in healthcare, housing, and daily living expenses.

How Much Extra Money Will You See?

While the precise numbers won’t be available until closer to the adjustment date, it’s beneficial to understand what a COLA increase typically entails.

• Average Increases: Over the last few years, COLAs have ranged from about 1% to 5%. For example, if you’re currently receiving $1,500 in benefits, a 3% increase would boost that to $1,545.

• Plan Accordingly: While it’s comforting to expect extra money, it’s essential to factor this increased benefit into your overall budget. Use this opportunity to review your financial plan and set realistic goals.

Making the Most of Your Benefits

With this upcoming increase, now might be a great time to reassess how you’re managing your finances. Here are some practical tips to effectively utilize your VA benefits:

• Budgeting Wisely: Create a monthly budget to track your income and expenses. Review where you can cut costs or allocate more funds to savings.

• Emergency Fund: If you don’t already have one, consider setting aside a portion of your benefits each month into an emergency fund. Aim for three to six months’ worth of living expenses.

• Investing in Your Future: If your financial situation allows, think about putting some of your benefits toward low-risk investment options. This can help your money grow over time.

A Final Word

The increase in VA benefits is a welcome change for many veterans and their families. By keeping an eye on your finances and planning effectively, you can make the most of this adjustment. Remember, preparation is key, and by organizing your budget now, you’ll be ready to embrace this new financial chapter when it arrives.

As July 2025 approaches, stay informed about the specific changes to your benefits, and take steps to enhance your financial well-being today.

Priya Desai

Writes about personal finance, side hustles, gadgets, and tech innovation.

Bio: Priya specializes in making complex financial and tech topics easy to digest, with experience in fintech and consumer reviews.